Figure 5
The chart plots cost in dollars against maximum distance from 7 to 197 kilometres. Cost components include fixed cost between hubs and fields, transportation costs between hubs and warehouses, fixed operation costs, operation variable costs, opening and expansion costs, and closing costs. Total cost decreases from about 7.5 million dollars at shorter distances to about 4.4 million dollars at longer distances. Fixed cost between hubs and fields increases from about 1.0 million dollars to about 2.2 million dollars. Fixed operation costs decrease from about 4.6 million dollars to about 1.4 million dollars. Transportation costs remain near 1.0 million to 1.4 million dollars. Operation variable costs, opening and expansion costs, and closing costs remain comparatively small and decrease gradually across the distance range.Variation in total costs by coverage distance